Shares of Emerson Electric Co. (NYSE:EMR) recorded 1.54% gain during trading session on August 13th, 2019. The script traded as low as $57.65 and last traded at $59.19. 3.43 million shares changed exchanged hands during trading, a drop of -10.14% from the 30-day average session volume of 3.11M shares. The firm had previously closed at $58.29. The company has $628.44M outstanding shares, a price-to-earnings ratio of 17.97, price-to-earnings-growth ratio of 2.06and a beta of 1.34. The company has a RSI of 37.25, ATR of 1.69 and a volatility of 2.68% this week. EMR has a 52 week low price of $55.38 and a 52 week high price of $79.70.
Investors have identified the tech company Emerson Electric Co. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 37.20B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Emerson Electric Co. (EMR) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For EMR, the company has in raw cash 1.6 billion on their books with 2.45 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 0 total, with 477 million as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
EMR were able to record 1.41 billion as free cash flow during the recently reported quarter of the year, this saw their quarterly net cash flow reduce by 510 million. In cash movements, the company had a total of 1.8 billion as operating cash flow.
Potential earnings growth for Emerson Electric Co. (EMR)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Emerson Electric Co. recorded a total of 4.68 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.05% coming in sequential stages and their sales for the third quarter increasing by 0.02%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.68 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2 billion. This allows shareholders to hold on to 628.44M with the revenue now reading 980 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.73 cents a share).
Is the stock of EMR attractive?
Having a look at the company’s valuation, the company is expected to record 3.93 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EMR sounds very interesting.
In related news, Sr. VP & Chief Marketing Off. Button Bell Katherine sold 4,470 shares of the company’s stock in a transaction that recorded on June 20th, 2019. The sale was performed at an average price of 65.00, for a total value of 290,550. As the sale deal closes, the Sr. VP & Chief Marketing Off. Button Bell Katherine now sold 7,794 shares of the company’s stock, valued at 500,164. Also, Pres & Chair Aut Solutions Train Michael H. sold 12,278 shares of the company’s stock in a deal that was recorded on June 11th, 2019. The shares were sold at an average price of 63.80 per share, with a total market value of 129,298. Following this completion of acquisition, the Sr. VP & Chief Marketing Off. now holds 15,791 shares of the company’s stock, valued at 1,009,141. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.30%.
7 out of 22 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Emerson Electric Co. stock. 0 analysts has assigned a Sell rating on the EMR stock. The 12-month mean consensus price target for the company’s shares has been set at $70.33.